SNB President Warns Against Bitcoin in Swiss Reserves

The Swiss National Bank (SNB) has expressed reservations about incorporating Bitcoin into Switzerland's official reserves, citing concerns over volatility, liquidity, and security risks. In a recent address, SNB President Martin Schlegel highlighted the unpredictable nature of Bitcoin, which does not align with the central bank's objective of safeguarding its investments. Schlegel emphasized the importance of maintaining reserves that are readily liquid to facilitate prompt monetary policy actions as required.

Despite acknowledging the crypto market's impressive valuation of almost $3 trillion, Schlegel described the sector as a "niche phenomenon" within the larger financial ecosystem. He firmly believes that Bitcoin and other digital currencies lack the stability necessary to supplant the Swiss Franc. As the digital currency landscape continues to evolve, the SNB remains committed to ensuring financial stability and security for its monetary operations.